Defining a pip
A pip is a conventional unit of exchange-rate movement. For many currency pairs it is the fourth decimal place; for many JPY pairs, the second decimal place.
Platforms may quote fractional pips with an extra decimal place. Check the actual instrument specification.
An illustrative example
For the usual quoting convention, EUR/USD moving from 1.1000 to 1.1005 represents five pips. USD/JPY moving from 150.00 to 150.05 also represents five pips when a pip is 0.01.
These numbers are hypothetical and not live prices.
A pip's cash value varies
The monetary value of a pip depends on contract size, currency pair, account currency and broker specifications. One pip never has one universally fixed cash value.
Do not estimate real position risk from generic pip values without verified contract specifications.
About the original source
This resource draws on an earlier company publication. It has been reworded for clarity, avoiding statements that imply guaranteed outcomes or certain forecasts.
View the legacy source